Permanent employment, probationary employment, or fixed-term employment – what is the difference?

By Mallbutiken · Fact-checked September 30, 2026 · Approximately 8 minutes reading time

Permanent employment is the general rule under the Employment Protection Act (LAS). Fixed-term employment may be used in the forms permitted by law, while probationary employment is a specific fixed-term trial period that may normally last for a maximum of six months. The difference primarily affects how the employment begins, how it can be terminated, and when it may transition into a permanent position.

Permanent, probationary, and fixed-term – comparison

Permanent employment is the general rule

Section 4 of LAS states that employment contracts are valid until further notice. If the employer and employee have not validly agreed upon a permitted fixed-term form, the default position is therefore permanent employment.

Permanent employment lacks a predetermined end date. It can end through, for example, notice of termination or summary dismissal under the conditions specified by law and any applicable collective agreement. The contract should specify the applicable notice period or provide a correct reference to the rules governing it.

Furthermore, LAS states that employment contracts are for full-time unless otherwise agreed. Permanent vs. fixed-term and full-time vs. part-time are therefore two different dimensions.

Probationary employment – a trial period, not a permanent form

According to Section 6 of LAS, agreements for fixed-term probationary employment may be made if the trial period is a maximum of six months. The purpose is normally for the parties to test whether the employment works before it becomes permanent.

If the employer or employee does not wish for the employment to continue after the end of the trial period, notice must be given no later than the end of the trial period. If no such notice is provided, the probationary employment converts into permanent employment.

LAS also contains special rules regarding notifications and warnings when the employer wants to terminate a probationary employment or let it end. The contract template should therefore not attempt to replace the practical employment law process with a single general clause.

Special fixed-term employment

Special fixed-term employment is one of the fixed-term forms explicitly stated in Section 5 of LAS. Unlike a typical temporary replacement, it does not need to be linked to replacing a specific person. However, there are rules regarding how employment time is calculated and when the employment converts to permanent.

According to Section 5 a, a special fixed-term employment converts to permanent when the employee has been employed in special fixed-term employment for a total of more than twelve months during a five-year period, or during a period with certain consecutive fixed-term employments according to the law's rules.

Temporary replacement and seasonal work

Temporary replacement (vikariat) and seasonal work are also permitted fixed-term forms according to Section 5 of LAS. A temporary replacement should be described in a way that shows what the employment refers to and during what period or condition it applies. The employer may not use temporary replacement for the purpose of circumventing the specific rule referred to in Section 5.

A temporary replacement converts to permanent employment when the employee has been employed by the employer as a substitute for a total of more than two years during a five-year period.

Seasonal work is suitable for work that is actually linked to a specific season. The fact that the business simply wants greater flexibility is not in itself the same thing as the work being seasonal work.

What is meant by an employment "converting"?

Conversion means that a fixed-term employment transitions into a permanent employment when the legal time limits and conditions are met. It is therefore risky to look only at the name in the latest contract. The employer needs to keep track of previous employment periods and which form each period had.

Collective agreements may in some parts contain permitted deviations from LAS. Therefore, always perform a separate collective agreement check.

What should be in the employment contract?

Regardless of form, the contract should clearly state which employment form is used. In the case of limited time, the end date or the condition for termination must be stated, as well as whether the employment is special fixed-term, temporary replacement, or seasonal work. For probationary employment, the length of the trial period and any conditions must be specified.

See the broader guide on what employment contracts should contain according to LAS for salary, working hours, workplace, vacation, collective agreements, and other information requirements.

Checklist when choosing employment form

• Is the employment needed without a determined end point? Start from permanent employment.
• Is there an actual need for a trial period? Document the trial period.
• If fixed-term is used: which of the legal forms is it?
• Are there previous fixed-term periods that affect conversion?
• Is the end date or termination condition clear?
• Is the employment rate separately regulated?
• Do collective agreements affect the form, trial period, or other conditions?
• Has the correct written information been provided within the LAS deadlines?

Do you need contracts for different employment forms?

Mallbutiken's Employment Contract Template Package 2026 contains professional documents in Word and PDF for Swedish law. Price in the store: 199 SEK.

See the employment contract package

Common questions

Can a probationary employment be longer than six months?

The general rule in LAS is a maximum of six months. Collective agreements may affect certain rules, so check what applies to your business.

Is "hourly employment" a form of employment in LAS?

Hourly pay normally describes how the compensation is calculated, not in itself which employment form under LAS applies. The legal form needs to be assessed separately.

When does special fixed-term employment become permanent?

According to Section 5 a of LAS, conversion occurs when the employee has had special fixed-term employment for a total of more than twelve months during the periods specified by the provision.